It looks like padding. But when I float my cursor over the left and right of an image it's part of the image. I have searched for a long time (multiple times over the years I've used Atahualpa) and have not found a solution.

How do I remove this "padding" of sorts?

http://www.loadedkiln.com/

Some CSS like this might work.

.post img.size-full {
    width: 100% !important;
    max-width: 100% !important;
}

That almost worked! It fixed most of the images, but any images on the page that were not that wide grew to be too big. Thank you though!

Perhaps if I could make the text indent a bit and not the images? To line up with the image? Either way I would be pleased.

Your layout is defined as 1000px
your left sidebar is 208px
1000px - 208px = 792px

Your image is defined as width 722px center aligned

792px - 722px = 70px

half of that is 35px which is why you see the margins

I was hopeful but I set the width to be 930 and 900, and it is still happening. Hmm...